IF YOU ARE travelling abroad this summer, you can save a significant amount on your spends by using the right travel credit card. These cards come with benefits like accelerated rewards on travel, low forex markup, complimentary airport lounge access, travel insurance, and more.
Beating the Hidden Costs
Some go further, covering discounts on flights, hotel bookings and airport transfers through partner tie-ups. Look for a card that charges a low foreign currency markup fee as it quietly eats into your spends abroad. Some premium credit cards such as Axis Magnus, HDFC Infinia and ICICI Emeralde charge a low forex markup fee of 2%.
“If you are on a flight every other month, a specialised travel card makes sense because of lower forex markup fees, higher rewards on overseas spending, and loyalty perks which add up over multiple trips,” says Adhil Shetty, chief executive officer, Bankbazaar.com.
Maximising Points
Credit card reward points can significantly reduce travel expenses when redeemed strategically for flight and hotel bookings. Many banks have dedicated travel booking platforms, such as HDFC Bank’s SmartBuy, ICICI Bank’s iShop, and Kotak Unbox, through which cardholders can redeem their accumulated reward points for flight tickets, hotel stays, holiday packages, and other travel-related expenses. “The redemption value offered on these platforms is higher than other redemption options, adding value for travellers,” says Santosh Agarwal, CEO, Paisabazaar.
Transferring credit card points to an airline’s frequent flyer programme or a hotel loyalty scheme delivers better value than cashing them in for merchandise or against your credit card bill. Banks and card issuers also partner with airlines, hotel chains and travel platforms, and these tie-ups often come with bonus conversions or limited-period redemption rates.
Individuals should also consider their loyalty towards travel portals, airlines, and hotels, and choose cards that offer maximum value with the associated brands through co-branded partnerships. They should look for redemption flexibility, airline and hotel partners, capping and restrictions before applying for a card.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should assess their financial goals, risk appetite and consult a qualified financial advisor before making investment decisions.
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